Pick Top Stocks For 2019, Best Stocks For 2019

Monthly Archives: June 2018

In theory, investors shouldn’t care about the price of a company’s stock. What matters more than anything is the market cap. It’s an error to think a stock is cheap simply because its share price is in the low single digits. And investors should use extra caution when searching through low-priced stocks. Oftentimes, stocks that have fallen to trading for just a couple bucks end up going all the way to zero.

That said, some of the market’s biggest winners also come out of the sub-$5 stock category. Whether the company has a low share price due to falling from glory or just not being discovered yet, these low-priced players can sometimes rocket to crazy heights.

So, with the disclaimer that these sorts of companies tend to be of the high-risk, high-reward variety, let’s take a look at three cheap stocks under $3 that could fly in coming quarters.

Best Insurance Stocks To Own Right Now: Trina Solar Limited(TSL)

Energo (CURRENCY:TSL) traded up 5.3% against the U.S. dollar during the 24-hour period ending at 18:00 PM ET on June 29th. One Energo token can currently be bought for approximately $0.0146 or 0.00000235 BTC on popular cryptocurrency exchanges including Gate.io, Coinrail, Coinnest and CoinEgg. Energo has a market capitalization of $9.93 million and $823,323.00 worth of Energo was traded on exchanges in the last 24 hours. Over the last week, Energo has traded 11.7% lower against the U.S. dollar.

Energo can be bought or sold on the following cryptocurrency exchanges: Coinnest, CoinEgg, Gate.io and Coinrail. It is usually not possible to buy alternative cryptocurrencies such as Energo directly using U.S. dollars. Investors seeking to acquire Energo should first buy Bitcoin or Ethereum using an exchange that deals in U.S. dollars such as Gemini, Changelly or Coinbase. Investors can then use their newly-acquired Bitcoin or Ethereum to buy Energo using one of the exchanges listed above.

Best Insurance Stocks To Own Right Now: ENERGY TRANSFER PARTNERS(ETP)

If high yields are indicators of high risk, then Energy Transfer Partners’ 12.4% yield ought to be an indicator of astronomical risk! But for this energy infrastructure MLP, the risk appears substantially lower than it did a few months ago, which may make this the time to buy in before the market catches on.

Energy Transfer Partners, which operates more than 71,000 miles of pipelines across the U.S. — including the controversial Dakota Access Pipeline — has a well-established yield and a history of increasing it regularly. In fact, the company has never cut its quarterly distribution, increasing it instead almost every quarter since the company went public in 2002. That’s one heck of a record of commitment to increasing value for unitholders.

IMAGE SOURCE: GETTY IMAGES.

The market, though, has been concerned about the partnership’s balance sheet, which is is awash in debt, and its distribution coverage, which was very thin for much of last year. However, in its most recent Q4 2017 earnings report, the company posted a distribution coverage ratio of 1.3 times, which is a very comfortable margin.

The company also has taken some concrete steps to pay down more expensive debt through asset sales and take on less expensive debt in return, which has cleaned up its balance sheet somewhat — so the risks seem much more remote. Even if the worst happened and the company’s yield were, say, halved, Energy Transfer Partners would still yield more than many of its peers.

Investors should be aware that there are some additional tax reporting requirements for MLP unitholders, which can make them a poor choice for some portfolios. But if that doesn’t bother you, you’d be hard-pressed to find this high a yield for this moderate a risk.

Best Insurance Stocks To Own Right Now: DAQO New Energy Corp.(DQ)

People’s Republic of China-based Daqo New Energy Corp (NYSE:DQ) manufactures and sells polysilicon and wafers in the People’s Republic of China. This Zacks Rank #1 company has a 3-5 years EPS growth rate of 7% and a Value Score of A.

It’s one of the toughest questions to answer this year: amid all the fears and uncertainties in the broader markets, why haven’t gold stocks jumped in valuation? The traditional safe haven asset hasn’t looked good since collapsing in 2013. And despite some promising developments, every move up is seemingly fiercely contested.

Although it’s a tired sentiment, investors should note that this time could really be different. For one thing, the bullion sector, and to a large degree, gold stocks, perform well during periods of market fear. Honestly, what better word describes the current mainstream emotion? Although the benchmark indices have recently put up strong numbers, the Dow Jones is still down 1.6% year-to-date.

Next, we have to consider the Trump factor. Our President doesn’t lack anything in the confidence department, but political competency is another matter. No, I’m not delivering a cheap shot at our Commander-in-Chief. Rather, I’m suggesting that his diplomatic skills will be tested in a baptism of fire. Maybe it will work out, or maybe it won’t. Either way, gold stocks to buy don’t seem like a bad idea!

Finally, gold prices may see a seasonality boost. Since 1999, the second quarter on a year-over-year basis produces the strongest gains. Granted, the margins are small: the second quarter averages 10.1% YOY returns, while the worst quarter (the first) produces 9.6% returns. Still, it is a statistical advantage.

With all that’s going on right now, precious metals are a smart play. Here are seven gold stocks that will find a momentum burst this spring!

Best Undervalued Stocks To Own For 2019: Las Vegas Sands Corp.(LVS)

Source: Robert Riley via Flickr

Although Las Vegas Sands Corp. (NYSE:LVS) has put its expansion in the U.S. on hold while it explores international opportunities, it still has a couple of nice hotels to welcome you — The Venetian and The Palazzo — should you be going to Vegas this summer.

However, Macao is where LVS generates the lion’s share of its adjusted property EBITDA — 53% of $1.5 billion in Q1 2018 — with Singapore adding another 26% and the U.S. the remaining 11%.

The company’s future developments in Macao, Singapore, Japan and South Korea, which include two of more than $10 billion, will be financed with up to 35% of the cost with LVS stock and the remainder with debt. The goal is to produce at least a 20% return on invested capital on these developments.

Now that Steve Wynn’s out of the game, it seems Sheldon Adelson’s Las Vegas Sands will have the last laugh.

When it comes to the lucrative high-speed network switches market, Arista Networks goes toe-to-toe with Cisco Systems (NASDAQ:CSCO). But while its larger competitor is struggling to grow sales and earnings, Arista Networks is growing by leaps and bounds.

Part of ANET’s competitive advantage is that it isn’t tied down to legacy systems like CSCO is. Its equipment is next generation, built for the next iteration in networking and cloud services.

It has had a bumpy ride in 2018, but this is a long-term player with huge potential. It is a force in crucial megatrend sectors that will grow regardless of economic ups and downs.

Best Undervalued Stocks To Own For 2019: KB Home(KBH)

The smallest stock on our list with a $2.5 billion market cap, KB Home is set up to be a great buy at the current price level.

The company shows strong fundamentals, with revenues jumping 22%, deliveries up 11%, and increased net income in 2017.

Get long now in the $28.60 per share zone with a target price of $35.00 per share and initial stops set at $25.77 per share.

Best Undervalued Stocks To Own For 2019: DryShips Inc.(DRYS)

Shares of dry bulk shipping outfit DryShips Inc. (NASDAQ:DRYS) are surging nearly 13% higher on Thursday to break up and out of a long sideways pattern going back to October/November. The shipping industry has been plagued by fleet overcapacity resulting in pressure on charter rates.

But with a possible trade deal with China looking likely, the need to use dry bulk ships to transport American grain and soybeans across the Pacific Ocean will only grow.

The company reported a profitable quarter at the beginning of May, with adjusted operating earnings of $12.9 million versus a loss of $7.4 million the year before.

If a rising tide lifts all boats, bank stocks are the ship you want to be on.

Interest rates are rising. The economy is growing. And unemployment is below 4%, which has helped keep loan losses near historical lows. Best of all, most banks have spent the past decade shedding expenses, so a greater share of each dollar of revenue flows into pre-tax profit.

But investors can do even better by selecting the very best banks the market has to offer. Below, three Fool.com contributors make the case for why these stocks are worthy additions to your portfolio.

Last but not least, add Costco Wholesale Corporation (NASDAQ:COST) to your list of stocks to buy for their long-term uptrend.

Costco won’t win any value awards. Priced at 29 times its trailing earnings and 25 times its forward-looking profits, the stock is more than pushing its luck — especially by retail standards. But investors just don’t care. They love the way the brick-and-mortar retail has managed to compete with both Amazon.com, Inc. (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT) at the same time, setting the stage for shockingly consistent income and revenue growth — no “retail apocalypse” here.

Top 5 Medical Stocks To Buy For 2019: Eli Lilly and Company(LLY)

Our next choice is Eli Lilly And Co (NYSE:LLY). The stock has an Earnings ESP of +0.73% and a Zacks Rank #2.

The consensus mark for first-quarter earnings stands at $1.13 per share. Headquartered in Indianapolis, IN, Lilly has an excellent positive earnings surprise history.

The company’s average beat over the trailing four quarters is 4.08%.

Top 5 Medical Stocks To Buy For 2019: Amazon.com, Inc.(AMZN)

Shares in Amazon.com, Inc. (NASDAQ:AMZN) are down 7% over the last month. Amazon has had to deal with FB’s data woes as well as a barrage of tweet attacks from President donald Trump. “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted on April 3.

But while Amazon may not be the president’s favorite stock, it certainly has top marks from the Street. RBC Capital’s Mark Mahaney writes “Presidential Obsession” is now an investment risk, but we continue to view the long-term growth outlook for AMZN to be the most robust in ’Net land given the very large TAMs [total addressable markets] AMZN is facing.”

He continues: “For ’18, we believe AMZN starts gaining traction in Marketing services (AMS), while Cloud appears to have hit a positive industry inflection point.” Indeed, AWS revenue contribution is still growing and should act as a meaningful, sustainable source of leverage for Amazon.

Right now 34 out of 35 top analysts are bullish on the stock. These analysts see the stock spiking 19% to $1,706. This is just above Mahaney’s $1,700 price target.

Ingersoll-Rand Plc (NYSE:IR) is a designer, manufacturer and seller of industrial and commercial products.

The company is based out of Swords and has a Zacks Rank #2. The expected earnings growth rate for the current year is 17.21%. The Zacks Consensus Estimate for the current year has improved 2.3% over the past 60 days. Ingersoll-Rand has gained 4.4% in the past six months.

Top 5 Medical Stocks To Buy For 2019: AudioCodes Ltd.(AUDC)

AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. Analysts have become increasingly bullish on AUDC lately, and our consensus projection for its full-year earnings has moved three cents higher in the last month. The stock is a Zacks Rank #2 (Buy) based on this revision activity. The company is now expected to witness EPS growth of 22% on 9% higher revenue this fiscal year. Meanwhile, AUDC’s P/E of 16.2 represents a discount to its industry average.

When investors think of dividend-paying stocks, they generally think of older, more established, larger companies. But income investors can find yields — and value — by looking for small stocks to buy as well. Indeed, some of the best small-cap stocks are dividend payers.

And because these stocks generally don’t get the same amount of attention as their larger peers, these small-cap plays can often be found for a better value.

Here are three small-cap stocks to buy that offer dividends and potential for strong long-term returns. All three are among the best small-cap stocks and offer above-market income as well.

Top 10 Insurance Stocks To Buy Right Now: Two River Bancorp(TRCB)

Two River Bancorp a state-chartered commercial bank engaged in commercial and retail banking in New Jersey. The company is coming off a record quarter in terms of net income and earnings per share, which has helped its outlook improve and lifted the stock to a Zacks Rank #2 (Buy). For a regional bank, this is a hot growth option, with earnings and revenue expected to improve by 36% and 12%, respectively, in 2018. Meanwhile, shares are trading at just 13.5x forward 12-month earnings.

Top 10 Insurance Stocks To Buy Right Now: Tuesday Morning Corp.(TUES)

Source: Shutterstock

Dallas-based Tuesday Morning Corporation (NASDAQ:TUES) has become one of many retailers which have struggled to stay profitable in a changing retail environment. Founded in 1974, the company expanded across the country, operating in 41 states by 2001. During the past few years, the company has been plagued by high turnover in its top management and struggled to remain profitable.

Still, the company operates 724 stores across the U.S., which by itself should make it one of the hot penny stocks. Moreover, revenue grew by 10% in its latest quarterly report. Comparable store sales rose by 9.1% in Q1 as well. Investors should also note that the company relocated 58 stores in the last 12 months. At those stores, sales grew by 65%. This latest report held many encouraging signs for the company.

However, given that analysts expect net losses for both the current year and the year after, investors should still treat this stock as speculative.

Still, a stock price in the $3.30 per share range and a market cap of about $140 million seems low for a company with 724 stores. Traders should also keep in mind that this stock traded at over $22 per share in late 2014. If management can maintain revenue increases and return TUES stock to profitability, those who buy now could enjoy outsized gains from a dramatic comeback.

Unlike most bank stocks with high dividend yields, Oritani Financial Corp (NASDAQ:ORIT) exhibits some degree of growth. The commercial bank, which is based in Washington, New Jersey, saw its stock price fall to a 2009 low of $6.37 per share. Now trading around $16.40 per share, both its stock price and its dividend saw huge increases as the stock emerged from the depths of the financial crisis.

Those who bought near the 2009 low and held have also enjoyed massive dividend growth. The annual dividend in 2009 stood at 18 cents per share. By 2015, that dividend had grown to $1.20 per share. Though current conditions have forced the current annual dividend down to $1 per share, investors have still enjoyed both stock price and dividend growth over time.

In the near term, it appears most of the benefits will come from the dividend. If the 2018 earnings projection of $1.11 per share holds, that places the forward PE at around 14.5. Hence the stock trades near its average multiple. With 2019 profits expected to come in at $1.13 per share, the stock lacks the catalyst to energize growth.

However, some ORIT stock investors may want only the 5.2% dividend. Buyers who have time to wait on stock growth still should do well. Hence, investors wanting a high dividend and long-term growth should receive both from ORIT if they can exercise patience.

Tulsa-based Mid-Con Energy Partners LP (NASDAQ:MCEP) is an upstream oil and natural gas producer. As an exploration and production company, times are great when oil prices are high. However, in an environment of low prices, revenue generation becomes a struggle.

Fortunately for MCEP stock, crude oil now trades in the $70-per-barrel range, its highest price since 2014.

MCEP stock traded as high as $27 per share in 2013. The oil price slump of 2014-16 hit its interests hard. By 2016, MCEP had become a penny stock, trading as low as 73 cents per share at one point. The stock has struggled to gain traction since then, but now trades in the $1.75-per-share range.

However, company financials may have begun a turnaround. Revenue fell from $96.91 million in 2014 to $56.1 million by 2016. Although revenues rose to $58.93 million in 2017, analysts estimate revenues will remain below $60 million for both 2018 and 2019.

Whether those estimates factor in higher crude prices remains unclear. And at these levels, investors should still consider MCEP stock speculative. However, the stock remained consistently above $20 per share while oil traded above $100 per barrel. If oil can continue to climb higher, perhaps MCEP stock will return to 2013 levels and become one of the hot penny stocks.

Intuitive Surgical (NASDAQ:ISRG) is in a business that sounds like it comes straight from a science-fiction novel: Surgical robotics.

However, luckily for patients around the world, this revolutionary technology is not only possible, it is becoming more and more integrated into everyday hospital use.

Intuitive Surgical got its big break in 1999 when it introduced the da Vinci surgical system. Complete with a surgeon’s console, a patient-side cart, a 3-D vision system and wrist instruments, this system allows doctors to perform minimally invasive surgery with enhanced dexterity, precision and control.

In the end, this technology benefits the patients, who usually experience less pain, a shortened hospital stay, fewer infections and less scarring.

Nearly 20 years later, the company has developed several models of this surgical system and even offers a training program that brings surgeons up to speed on this technology.

This system has steadily caught on in the healthcare industry; last year alone, the company’s systems were used in 650,000 procedures around the world.

ISRG stock is up more than 30% so far this year, but that is still just the beginning for this next generation healthcare company.

As a rule of thumb, I try to stay away from the sub-$5 category when it comes to cheap stocks.

After all, companies don’t go public with a share price below $5. Thus, if a stock is trading below $5, that means investors have sold it off to be below $5. That usually means there is something really wrong with the underlying growth story, the valuation, or both.

For this reason, finding a winner in the sub-$5 group is like finding a needle in a haystack.

But if you find that needle, you could be looking at huge gains. After all, once upon a time in 2001, Amazon.com, Inc. (NASDAQ:AMZN) was basically a $5 stock.

I’m not saying you’ll find the next Amazon in the sub-$5 group, but you could find a stock will go up 2-5x or more in a hurry.

Bladex (NYSE:BLX), or Foreign Trade Bank of Latin America, based in Panama City, serves as a special purpose bank. The bank works to facilitate trade and business relationships between Latin America and the Caribbean. Its commercial sector accounts for most of its activities and generates most of the institution’s income. Its treasury sector handles funding, liquidity, and investment management. Operating in Panama also creates a unique advantage. Since the Republic of Panama uses the United States dollar, it also enjoys the credibility that comes with conducting business in the world’s reserve currency.

BLX remains a stable institution for more reasons than its use of the U.S. dollar, though. This stability extends to the growth (or lack thereof) of revenue and net income levels. After seeing revenue and profit growth in 2014, both revenue and profits had fallen back to 2013 levels by 2017. Growth has stagnated since, and analysts believe that it will not resume until next year.

Hence, dividends remain the compelling reason to invest in BLX stock. While dividend levels saw some fluctuations in past years, the company has held its annual dividend to the $1.54 per share level since 2016. This roughly translates into its 6.1% yield. Moreover, if profit growth predictions hold, consensus 2018 earnings of $2.12 per share should cover the dividend. Also, if the company meets 2019 profit forecasts of $2.46 per share, a dividend increase for 2019 remains a possibility. With the advantages of operating in Panama and the stability of its income, the BLX stock dividend remains a safe bet for a high dividend return.

Top 5 Gold Stocks To Buy Right Now: Marriott International(MAR)

Source: Shutterstock

I’m not a big traveler but my wife is, and whenever she’s on the road for work she stays at a Marriott International Inc (NYSE:MAR), usually at a Courtyard Marriott when in the U.S. and Delta when in Canada.

She’s excited about the upcoming merger of Marriott Rewards with Starwood’s loyalty program which gives her a greater option of places to stay for work. Traveling as much as she does, it’s essential to have an excellent hotel to return to at night.

Marriott is continuously opening new hotels. Its pipeline is massive. As of the end of the first quarter, it had 465,000 rooms either under construction or soon to be with 49% in North America, 30% in Asia, and the rest in other parts of the world with 82% of them, upscale or above.

Back in 2013, I wrote about its new Moxy brand. It now has ten Moxy Hotels open in the U.S. with another 14 on the way — and that’s just one of its many brands.

Long-term, this is a hotel stock you want to own.

Top 5 Gold Stocks To Buy Right Now: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group (NYSE:UNH) is the largest single health carrier in the United States. It serves more than 85 million people worldwide and is a parent company to six businesses, including UnitedHealthcare — health insurance that offers policies to businesses and individuals, including Medicare and Medicaid policies.

Its other main branch, Optum, administers everything from mental health and substance-abuse programs to mail-order pharmaceuticals.

While many drug store stocks were rocked by the news that Amazon has now entered the pharmacy business, UNH has been relatively undisturbed because of its integrated strategy.

Looking ahead to full-year 2018, the healthcare giant is targeting adjusted earnings between $12.30 and $12.60 per share, which is a 22% to 25% year-over-year increase and up from its previous guidance of $10.55 to $10.85 per share.

Additionally, cash flows from operations are expected to be in a range between $15 billion and $15.5 billion, and UnitedHealth Group is calling for total revenues between $223 billion and $225 billion.

Top 5 Gold Stocks To Buy Right Now: Adobe Systems Incorporated(ADBE)

Source: Shutterstock

The story at Adobe (NASDAQ:ADBE) is a faster-growing version of that of Microsoft (NASDAQ:MSFT). In both cases, the shift from “on-premise” software to cloud-based offerings hasn’t just been a case of selling the same product in a different medium. Rather, the move to the cloud has opened up new cross-selling and revenue opportunities … and benefited margins as well.

Indeed, Adobe’s fantastic growth story often seems a bit lost in the shuffle in terms of tech coverage, despite a $120 billion market capitalization and hugely impressive performance. In fiscal Q2, revenue rose 24% and EPS jumped an impressive 77% year-over-year. Adobe once again beat analyst estimates; it hasn’t missed consensus on either revenue or EPS since September 2014.

Valuation is a bit of a concern, as Lango pointed out after the fiscal Q2 report. But a 31x forward EPS multiple isn’t that oppressive in the context of recent growth, and a pullback since earnings has brought the valuation in a bit. Investors are still paying up for ADBE, but at least they’re paying up for quality.

Top 5 Gold Stocks To Buy Right Now: Shopify Inc.(SHOP)

Shopify is an e-commerce platform company that helps businesses of all sizes run their own online store and sell products via social media and through platforms including Amazon.com.

When it comes to growth stocks, it doesn’t get much better than Shopify. About 600,000 merchants are now using its platform, up from 243,000 just two years ago. And in the fourth quarter of 2017, Shopify’s sales were boosted by 71% year over year. The growth has been sparked in part by its ability to bring bigger (read: more lucrative) companies onto its platform. Shopify ended 2017 with 3,600 high-end Plus customers, including huge companies like Cummins and Ford. Shopify Plus customers pay a premium for the company’s services and these sales are helping to boost Shopify’s monthly recurring revenue (MRR). MRR from Shopify Plus now makes up 21% of total sales, up from 17% in the year-ago quarter. But wait, there’s more. Not only are sales booming, but the company’s gross merchandise volume (the value of the transactions processed on its platform) jumped 71% in 2017.

Management expects full-year 2018 sales to be $980 million at the midpoint, which would be a 45% increase from 2017. Similarly, the sales estimate for first-quarter 2018 is $198 million to $202 million, which would be a nearly 57% year-over-year increase at the midpoint.

Shopify’s share price has jumped about 60% over the past year, and while it’s experienced some volatility, there’s likely more room for this company to run. That’s because the online shopping market is still booming and is expected to climb from $385 billion in 2016 to $632 billion by 2020.

Investors should know that Shopify’s shares aren’t cheap and its stock price is likely to see more dips and pops ahead. But this company is quickly building out its own niche in the e-commerce market and has proved that it knows how to add customers both big and small. If Shopify continues at this pace, stable profitability shouldn’t be far behind.